3i Infotech Reports Strong Q2FY24 Revenue at Rs 210 crores, up by 8.2% QoQ and 18.7% YoY

3i Infotech announced its consolidated financial results for the second quarter and half year of FY24 ended September 30^th, 2023.

The company reported a consolidated revenue of Rs 210.3 crores in Q2FY24 with a growth of 8.2% QoQ and 18.7% YoY. Gross margin of 11.4% with a growth of 1.3% YoY. Profit Before Tax (before exceptional item) turned positive to Rs 26.4 crores, compared to Rs 11.2 crores last quarter.

3i Infotech’s financial performance in the first half of the year demonstrates its commitment to excellence in the current challenging global economic situations. The company’s H1FY24 revenue stood at Rs 404.7 crores witnessing a growth of 13.6% YoY; gross margin of 13.4% with a growth of 2.9% YoY. EBITDA was at Rs 4.7 crores.

Further, 3i Infotech’s growth has been driven by key markets, notably the US and EMEA, followed by APAC. In terms of line of business, Application-Automation-Analytics (AAA) continues to remain the largest revenue contributor followed by IMS. The company’s approach to being cloud-first also witnessed remarkable growth, surging by 1.7 times QoQ and 3.8 times YoY.

During the quarter, 3i Infotech has signed 35 new contracts from new and existing customers and continues to see a strong deal momentum for H2FY24. Leveraging its innovative products and technology-driven platforms, the company’s revenue mix is transitioning from classic enterprises to next-generation business.

Commenting on the Q2FY24 results, Mr. Thompson P. Gnanam, Managing Director, and Global CEO of 3i Infotech Limited, said: “We are pleased to announce a robust financial development. This financial growth is primarily attributed to our continuous commitment to build new services under the NuRe brand and to expand into new locations and sectors. We have made substantial investments in new business models with the clear goal of positioning ourselves for the future. Our ultimate objective is to monetize and develop our strategic investments in cloud-first, digital inside cognitive-powered, and edge-ready products.”

3i Infotech has also seen a strengthened trajectory in its NuRe FutureTech Division by successfully launching two AI based products to the market. It has associated with India’s top premier institute to propel the tech innovations. Along with such advancements, the company has also taken significant initiatives in the telecom sector through its subsidiary NuRe Bharat Network formed as a part of consortium with the RailTel Corporation of India. 

“We anticipate substantial and sustained contribution from NuRe Bharat Network (RailTel) project going forward, with a large order pipeline growing steadily. As part of the ongoing efforts to build good governance, Impairment has been carried out. This charge to Goodwill was required in our books which was existing since the pre-carve out period. The non-cash impairment charges totalled Rs. 179.6 crores and has been recorded in the Q2 FY24 results. It doesn’t have any cash impact and is not related to current business activities (post product carve out in FY21)”, Mr Gnanam added.

Key Highlights of the Consolidated Financial Performance 

Q2FY24 ended September 30, 2023 

• Operating Revenue was Rs 210.3 crores, up by 8.2% QoQ and 18.7% YoY
• PBT (before exceptional item) was Rs 26.4 crores, up by 37.6 crores QoQ and Rs 2.9 crores YoY

Q2FY24 – Other Business Highlights

• Application-Automation-Analytics (AAA) continues to remain the highest revenue contributor with Rs 132.3 crores followed by IMS revenue of Rs 36.4 crores and BPS revenue of Rs 27.8 crores
• Revenue from US was Rs 95.4 crores, a growth of 11.7% QoQ, followed by India revenue of Rs 88.7 crores, a growth of 8.8% QoQ
• From a vertical standpoint, Banking & Financial Services (BFS) is a major contributor in total revenue with a 36.1% revenue share while Information Technology contributed 30.1% in total revenue during the quarter
• Cloud-first reported a revenue of Rs 11.7 crores, a growth of 1.7 times QoQ and 3.8 times YoY
• Digital IMS (DIMS) revenue was Rs 36.4 crores with a growth of 16% QoQ and 83% YoY
• 35 new logos were added during the quarter
• Total Order book was at Rs 46 crores.

Key Business Announcements in Q2FY24

• 3i Infotech partners with Databricks, the Data and AI company, to drive business value on a single platform
• Won 5-year contract by Ujjivan Small Finance Bank Limited, for end user support service. Total Contract Value of Rs 39.55 crores plus one-time transition charges of Rs 35 Lakhs
• 3i Infotech recognized as a Representative Vendor in the 2023 Gartner® Market Guide for Application Testing Services, Worldwide
• 3i Infotech entered into strategic partnership with InsureMO offering PaaS to enterprises
• Received Gartner coverage in their Market Guide for Oracle Cloud Infrastructure Managed Services Specialist
• Featured in Everest Cloud Services in Insurance PEAK Matrix® Assessment 2023
• Featured in Everest’s Next-Generation Quality Engineering (QE) Services PEAK Matrix® Assessment 2023
• Featured in Everest Group’s PEAK Matrix® Assessments on Application Automation Services 2023